Congressman
Richard G. Renzi, from Arizona's first congressional district, and
his associates James W. Sandlin, 56, of Sherman , Texas and Andrew
Beardall, 36, of Rockville, Md., Renzi's business associate were indicted
by federal authorities on Friday, according to a Justice Department
report obtained by the National Association of Chiefs of Police

The
indictment charges Renzi, a Republican, and Sandlin in 27 counts with
honest services wire fraud, extortion and money laundering, and conspiracies
to engage in these acts, based on Renzi's active involvement in the
sale of Sandlin's property in Cochise County, Ariz. to a participant
in a federal land exchange proposal.

The
indictment alleges that Renzi and Sandlin previously owned land together
in Kingman, Ariz. and that in 2003, Sandlin bought out Renzi's interest
for $200,000 and a note for $800,000. The indictment further alleges
that in 2005, at a time when Sandlin still owed Renzi $700,000 in
principal on the note, Renzi insisted that two separate entities doing
business in Arizona purchase Sandlin's property in exchange for his
support on land exchange legislation.

The
indictment also alleges that Renzi failed to disclose to either entity
Sandlin's $700,000 debt to him; that after the second entity purchased
Sandlin's property, Renzi failed to disclose to that group the $733,000
he received from Sandlin at the commencement and close of escrow in
the spring and fall of 2005; and that Renzi failed to disclose to
Congress his earnings from Sandlin in his 2005 financial disclosure
statement.

Also,
the indictment traces the manner in which Renzi and Sandlin used the
alleged proceeds of the above unlawful activities for their own personal
and business use.

The
remaining counts of the indictment charge Renzi and Beardall with
violations of federal insurance laws, by embezzling over $400,000
in insurance premiums from the trust account of the Patriot Insurance
Agency, Inc., a business owned by the Renzi family in Santa Cruz County,
Ariz., to fund his first Congressional campaign in 2001 and 2002,
and by subsequently making false statements to influence state regulatory
investigations.

"Public
corruption creates a cynicism for government and unfairly stains legions
of honest public servants," said Alice S. Fisher, Assistant Attorney
General in charge of the Criminal Division.

"These
charges represent allegations that Congressman Renzi defrauded the
public of his unbiased, honest services as an elected official. The
Department of Justice will continue to enforce the laws that protect
the integrity of our government. I want to thank the agents of the
FBI and IRS, as well as the trial attorneys from the Public Integrity
Section and the Assistant U.S. Attorneys from Arizona for their diligence
investigating this case."

"Among
the allegations contained in the indictment, Congressman Renzi misused
his public office by forcing a land sale that would financially benefit
himself and a business associate, and in so doing, he betrayed the
trust of the citizens of Arizona," stated U.S. Attorney Diane J. Humetewa.

"This
indictment demonstrates a commitment by the Department of Justice
to root out public corruption wherever it is found. This commitment
is grounded in a system of justice where all individuals, regardless
of office or title, will be held accountable before the law, and which
holds our elected leaders in whom we entrust great confidence to the
very highest standards of ethical conduct. I want to thank the investigative
agents of the FBI and the IRS, as well as the prosecutors whose combined
work and dedication resulted in this indictment," said Humetewa.

"For
many years the FBI has had as one of its top investigative priorities
corruption on the part of our public officials who are positioned
within all branches of government," stated FBI Special Agent in Charge
John E. Lewis.

"Regardless
of one's status or position, when a public official elects to betray
the public's trust for personal gain, the very core of how and why
our system of government operates is immediately and negatively impacted.
Restoring the faith and trust in how our government is supposed to
operate, at all levels, is of paramount concern today as is evidenced
by the present indictment and will continue to be one of the FBI's
chief concerns far into the future," he said.

"As
a part of the larger federal law enforcement community, agents of
the IRS Criminal Investigation Division are dedicated to investigating
and exposing serious financial crimes," stated Andrea Whelan, Special
Agent in Charge, IRS Criminal Division. "It is disheartening, however,
when the outcome of our investigative work causes the American public
to question the integrity of our elected representatives and our government
in general."

Convictions
for honest services wire fraud and extortion each carry a maximum
penalty of 20 years in prison, a $250,000 fine or both, and a wire
fraud conspiracy carries a maximum penalty of 5 years in prison, a
$250,000 fine or both.

Convictions
for a money laundering conspiracy and concealment money laundering
each carry a maximum penalty of 20 years in prison, a fine of $500,000
or twice the value of the money at stake, or both.

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A
conviction for the use by Renzi and Sandlin of the alleged proceeds,
known as transactional money laundering, carries a maximum penalty
of 10 years in prison, a fine of $500,000 or twice the value of the
money at stake, or both. Convictions for false statements to an insurance
regulator and misappropriation of insurance premiums each carry a
maximum penalty of 10 years in prison, a $250,000 fine or both, and
a conspiracy to commit these insurance offenses carries a maximum
penalty of 5 years in prison, a $250,000 fine or both.

This
case's arraignment hearing is set for March 6, 2008 in Tucson, Arizona.

Jim Kouri, CPP
is currently fifth vice-president of the National
Association of Chiefs of Police. He's former chief at a New York City
housing project in Washington Heights nicknamed "Crack City" by reporters
covering the drug war in the 1980s. He's also served on the National Drug
Task Force and trained police and security officers throughout the country.

He writes for
many police and crime magazines including Chief of Police, Police Times,
The Narc Officer, Campus Law Enforcement Journal, and others. He's appeared
as on-air commentator for over 100 TV and radio news and talk shows including
Oprah, McLaughlin Report, CNN Headline News, MTV, Fox News, etc. His book
Assume The Position is available at Amazon.Com, Booksamillion.com, and
can be ordered at local bookstores.